Some believe that a mansion in Bishkek and one in a resort area of Spain can be bought at almost the same price, and there is some evidence to confirm this. On sites selling real estate abroad https://www.homesoverseas.ru/ you can find offers at fairly reasonable prices.
For example, a house in Bishkek with an area of 100 to 300 square meters will cost about $ 120,000 - $ 150,000 at a minimum. The exact cost would depend on the area, infrastructure, repairs, and property itself. A comparable house in Costa Blanca can be found for about the same amount.
As for our resort area: Issyk-Kul Lake, for the same $ 120,000 you can buy a nice cottage within a cozy pension property. But there are other offers for fantastic sums. Compare the latest ads for the sale of cottages in Issyk-Kul and Bali.
A small cottage in “Caprice” costs $ 550,000, and a villa on the ocean in Bali is only $165,000. Something is wrong here. To find out more about the state of real estate prices in Kyrgyzstan, we turned to experts.
It isn’t that simple
To state unequivocally that prices in Kyrgyzstan are the same as in Europe would be incorrect, according to founder of “Alpha” construction company Rustam Satekov.
“If we take Spain as an example, then we must take into account that it, like any country, is divided into good areas and not very good ones. We may have seen an ad that the villa is for sale for $120,000, but this may be the worst area where there are no amenities and many disadvantages. Spain is oriented to all of Europe, and therefore there is a high demand for real estate and it costs big money there. In addition, to maintain a small mansion, you have to pay a huge tax, which is not the case in Kyrgyzstan, ”the expert explained.
Today, the pricing policy in Kyrgyzstan is such that the most expensive housing is in Bishkek. In the center of the capital, in the so-called “golden square”, prices start at $ 800 and higher. The average is $ 1,000 per square meter. Outside this area, closer to more suburban neighborhoods, prices start at $ 400 per square meter.
Expert Izzat Tairov believes that real estate prices in Kyrgyzstan are justified and add up based on market needs
“In Kyrgyzstan, as elsewhere, the process of urbanization is ongoing. Everyone wants to move to the capital, for this reason, housing demand is constantly increasing. Outside Bishkek, housing is much cheaper, ”Izzat Tairov explained.
Wish Market
Businessman Bolotbek Isakhunov works in real estate in Kyrgyzstan and America. He believes that the lack of statistics on real estate prices in Kyrgyzstan creates issues for buyers, sellers, and realtors.
“Our pricing policy is divided into“ desired ”and“ real ”. That is, the price you want to sell for and the price you can really sell for. For example, in the USA the average cost of a house is clearly calculated, adjusted by location, the rise and fall in prices, as well as many other factors, is taken into account, ”the expert explained.
The lack of uniform pricing standards creates misunderstandings between the buyer and seller.
“The presence of a clear cadastral system gives an understanding of how the market is moving, what price dynamics are. All this helps people calculate the budget, location, quadrature and so on. There are situations when people sell for half the cost, not because it is the market price, but because of personal circumstances. Another landlord who bought it once, for example, for $ 50,000, can, at the same price, put it up for sale in a few years. And wait for months until someone agrees. He can afford it, since we have low property taxes. In America, maintaining a property is expensive for the owner, ”said Bolotbek Isakhunov.
Housing deficit
Despite the fact that the construction industry in Kyrgyzstan is one of the most active, there is still not enough living space.
“The construction boom which we are experiencing now began in 2010. What is 10 years for just over 100 construction companies and 6 million people? In order to provide at least 500 thousand people with housing, we need several million square meters. ”Rustam Satekov noted.
According to Izzat Tairov, we will see housing shortages for at least the next 5 years.
“We conducted a market analysis and found that according to the standards, there should be about 20 square meters of housing per person. We have set this figure at about 14 square meters. Despite the fact that more than 1 million square meters of housing are built annually in Kyrgyzstan, the deficit is more than 35 million square meters, ”the expert explained.
As long as there is a shortage, there will be demand. As a result over the next 10 years real estate prices in Kyrgyzstan will not only remain high, but could even increase.
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